Committee Minutes

FINANCE DEVELOPMENT COMMITTEE
Minutes
Monday, July 12, 2010 - - 5:30 p.m. - - Council Chambers

Present: Christensen, Sande, Glassheim (via phone), Gershman

Chair Christensen called the meeting to order at 5:30 p.m. and announced that the agenda order would be altered to move item 5 and 4 to the beginning of the agenda.

5. Bids for rehabilitation of 604 N Sixth Street

Richards stated that the City Council had previously authorized purchase of this property with the intent of rehabbing it and are requesting that Committee concur with staff recommendation to award to the low bidder Circle K Builders, Inc. She noted that both bids received were extremely close.

Motion by Sande, Second by Glassheim, to recommend award to low bidder, Circle K. Builders, Inc. Aye: All. Motion Recommended.

4. LM Wind Power Blades (ND), Inc. purchase of certain real property.

Greg Hoover, Director of Urban Development, stated that this is a housekeeping item related to the sale of land to LM Wind Power Blades (ND), Inc. that both the City Council and Jobs Development Authority (JDA) previously approved. This action will change the land from the name of the City to the JDA.

Motion by Glassheim, Second by Sande to recommend approval of the transfer . Aye: All. Motion Carried.

1. Alerus Center Events Fund Discussion.

Roger Swanson, Executive Director of the Alerus Center, submitted information as to a proposed process for obtaining funds for use in bringing concerts to the community and that they have a process for working with Venuworks, and now looking to include the City Council in the process in best way to remain responsive to potential contract negotiations, yet still be able to keep the Council informed in the approval process. Included in the packet distributed to Council is information on the market and industry procedures, as well as forms which would be used in the process.

Christensen explained that there is $250,000 set aside in the budget for use in the concert process, which will remain unused unless a potential deal is brought to the Council for consideration and there will likely be a similar set aside in the 2011 budget. He continued that there has been some discussion of how to utilize the returned management fees and whether they should also be utilized to fund events attraction. This discussion will also include what oversight interface should be to include Council in the decision process with the tight timeline needed for the events and a 24-48 hour turn around time to review proposals and then if the proposal meets the parameters set out would initiate the calling of a special Council meeting to convene in executive session and review the proposal. The Concert Fund would operate in a first in first out method for revenue generated with quarterly reporting to the Council.

Glassheim stated that he has some concern about one person having the authority to veto something that could be the result of a couple of weeks worth of bidding by commission and they may not have the right age level, etc in mind and perhaps the whole Finance Committee could rather be called within 24 hours to hear the presentation. He added that he understands the need to move quickly and the need to meet in exec session, but would like to see three minds consideration. He also questioned whether the City Attorney had reviewed and approved the proposed process.

Swanson stated that the process is basically the same that they have been using with a slight change to include the City and has not yet been to the City Attorney for review. Christensen requested that the information be forwarded to the City Attorney so that he could review it prior to Monday’s Council meeting particularly so that we would be sure that requirements could be met regarding the state’s open meeting rules.

Randy Newman, Alerus Commission, agreed with thought of having more than one committee member and perhaps even use any two of the three committee members or in event can’t get that then perhaps president of the Council could serve as an alternate. He added that the intent of the Commission is provide Council with information along the way and would not be expecting a 15 minute decision, just need to make sure that the information can be kept confidential as its provided. Christensen agreed with making the change as discussed and restated that need to make sure that any process meets legal rules and have opinion from City Attorney prior to approving any process.

Motion by Glassheim, second by Sande, to recommend approval of the process as proposed and that it should include participation of 2 of the 3 Finance Development Committee Members, and in the event that is not possible, that the President of the City Council be an appropriate alternate and that the process is subject to review of the City Attorney.

Sande stated that he is having a hard time seeing a situation when we say no, given that those with the expertise in the industry think that it would be a good event for the community. Christensen explained that the main concern from the City would be when a large guarantee was needed or if we were being asked to co-sponsor the event with the promoter and then would be looking at a review of the level of risk and if that is something the Council was comfortable with. Upon call for the question, Aye: All. Motion Carried.

2. Retail Task Force recommendation.

To review the presentation provided at the meeting, please click here.

Mayor Brown stated that he and Mayor Stauss Co-Chair the Retail Task Force which is a committee created to address some community concerns including that our destination community status is declining and is important to look at why this is happening and to determine ways to strengthen our community as a trade center and better capitalize on the Canadian market.

Barry Wilfahrt, President/CEO, The Chamber of Grand Forks/East Grand Forks, gave a brief presentation with information on the proposal for hiring Buxton, Inc. to complete a Retail Propensity Analysis in the community. The presentation included information on the current retail economy in the community, concerns, and benefits from conducting the study. Wilfahrt stated that he has used this firm to conduct a study in the last community that he worked in and it provided valuable information to business owners in the community and noted that over 450 other communities also have used this firm to conduct studies in their community with positive results.

Wilfahrt explained that the investment to conduct the study is $50,000, with an additional $5,000 to cover some additional implementation expenses. Once the study has been completed the recommendation is to update it every three years, with anticipated costs for an update of $15,000 and that price could be included in the contract for the initial study. The proposal is to fund the study by sharing the cost between several entities as follows: $5,000 Chamber, $20,000 Convention and Visitors Bureau, $5,000 East Grand Forks EDHA, and $25,000 from the City of Grand Forks, which is being requested today.

Glassheim inquired whether approving participation in the funding of the initial study would bind the Council to any future funding participation. Wilfahrt stated that it would not and there would be no further funding needs for three years and at that time would look to others first as they did this time.

Sande commented that it was a very enlightening presentation and funding participation shows wide ranging support from both communities for the study to go forward, and that it was good to see the Chamber bringing this forward in support of their local business members. He asked who would provide staffing and coordination for the study and will the consultant also assist with coordinating meetings with companies interested in the community. Wilfahrt stated that the task force was a joint community task force and would continue and be staffed by the Chamber and that yes, Buxton, Inc. will assist with meeting coordination.

Gershman stated that he has been involved with the process over the last several months and has some concerns, but also sees some benefit to expanding our market. He continued that some of his concerns are that in the area of identifying what customers want and bringing that into businesses that is a business owner responsibility and one that they should already be doing for themselves and not sure that is our responsibility to provide. He added that another concern that he has is that the Chamber has over 900 members and for them to only commit to $5,000 seems that they should be able to commit some more private dollars to this if they are strongly in favor or proceeding. Wilfahrt stated that since they are using outside dollars would also be looking to make the study results available to all in the community not just Chamber members.

Christensen asked about the implementation process and what steps would be taken besides providing the report and whom would work with getting businesses into vacant spaces. Wilfahrt replied that they will share the data with the business community and then those businesses will take the data and utilize it to improve their businesses including property owners using it to recruit new businesses to fill their spaces. Christensen responded that he was hoping to hear that there would be a plan and staff to work with the real estate community and that there would be someone involved on the regional level to assist with coordination of recruitment or perhaps a recommendation to roll this into the Economic Development Corporation as a new role for them. Wilfahrt replied that he has had a discussion with them, however they have been firm in their stand that their focus remain on primary sector businesses and that the results may determine the type of implementation plan that is needed to be most successful. Gershman commented that he serves on the EDC board and have always believed that their purpose is not to get involved with competitive business sector, however the business climate nationwide is resetting now and not sure where it will go.

Sande commented that he still supports the project and is confident that the Chamber will work to get the information to those that need it and it will help those businesses improve themselves and show those companies without a Grand Forks location why they could benefit from coming here, which will generate more tax dollars and start to reverse the trend that we are seeing. He continued that this will also assist in the attraction of primary sector businesses, as we will have more amenities in the community.

Christensen stated that he still has a concern over who will do the work of implementation and would like to see the plan for that. Wilfahrt responded that at the Chamber they are proud of their ability to leverage member volunteers to make their programs work and while they do not have a firm action plan, would see that there would be a place to utilize their volunteers to also work on the implementation phase of this project and could be more effective than investing in a couple of paid positions. He added that the Council will receive progress reports along the way so they are kept abreast of the project and can offer feedback to how the process is conducted.

Moiton by Glassheim, Second by Christensen, to recommend participation in the study with a contribution from the City of $20,000 and request that the task force include representatives from the commercial real estate industry. Glassheim noted that he is suggesting a lower amount than requested because he also believes that the business community that will benefit from this project could participate at a higher level of support. Wilfahrt stated that he will bring those thoughts back to the Chamber board. Christensen suggested that the project also include participation from Bruce Gjovig’s department at UND. Upon call for the question, Aye: all. Motion carried.

3. City of Grand Forks real estate transfer to Jobs Development Authority (JDA).

Todd Feland, Public Works Director, stated that as described in the information submitted to Committee, the request is to declare surplus some land held in the Wastewater Department and approve its transfer to the Job Development Authority with the intent to sell the real estate.

Motion by Sande, Second by Glassheim, to recommend approval of the transfer of five (5) acres of City Real Estate Property (Wastewater Enterprise Fund Property) to the JDA in order to allow for the negotiations and sale of the real estate property for the purposes of economic development. Aye: All. Motion carried.

6. Grand Forks Renaissance Fund Organization

This item was postponed to the next Finance Development Committee meeting.

7. 2011 CDBG and HOME Programs.

This item was postponed to the next Finance Development Committee meeting. Chair noted that if necessary to meet federal deadlines, a special meeting of the Finance Development Committee could be called for discussion of this item.

8. 401 & 402 DeMers Ave Building Repairs.

This item was postponed to the next Finance Development Committee meeting.

Motion to adjourn by Sande, Second by Christensen.

Meeting adjourned at 6:40 p.m.

Respectfully submitted,

Sherie Lundmark
Admin Spec Sr